Chairman, Tamil Nadu Generation & Distribution Corporation Ltd. v. Talent Alloys (P) Ltd. , Rep. by its Managing Director
2017-11-27
K.K.SASIDHARAN, P.VELMURUGAN
body2017
DigiLaw.ai
JUDGMENT : K.K. Sasidharan, J. 1. Whether the Tamil Nadu Electricity Supply Code permits payment of arrears of consumption charges in installments is the core issue raised in these intra court appeals filed by the Tamil Nadu Generation and Distribution Corporation Limited. 2. The learned single Judge taking into account the large number of workers employed by the respondent in the respective appeals permitted the industry to pay Rs.10,00,000/- in W.A.No.402 of 2016 and Rs.5,00,000/- in W.A.No.447 of 2016 at the first instance and the balance amount in 10 monthly installments for reconnection of power supply. The order dated 26 October, 2015 is under challenge at the instance of the Chairman, Tamil Nadu Generation and Distribution Corporation Ltd., Chennai, primarily on the ground that there is no provision for payment of electricity consumption charges in installments. 3. The respondent failed to pay the consumption charges regularly and the same resulted in disconnection of supply. When writ petitions were filed challenging the order disconnecting the supply, the learned single Judge directed the respondent to pay a sum of Rs.10,00,000/- at the first instance and the balance amount in 10 monthly installments in W.P.No.23859 of 2015. Similarly, a direction was issued in W.P.No.31149 of 2015 to pay a sum of Rs.5,00,000/- at the first instance and the balance amount in 10 monthly installments without fail. 4. The appellants have taken up a contention by placing reliance on the amendment made to the Tamil Nadu Electricity Supply Code (hereinafter referred to "Supply Code"). According to the appellants, Regulation 22(4) of the Supply Code permitting payment of consumption charges in installments was omitted subsequently by a Notification dated 3 June 2014. It is the further case of the appellants that on account of the deletion of Regulation 22(4) of the Supply Code, the learned single Judge was not correct in permitting the respondents to pay the arrears in installments. 5. The Tamil Nadu Electricity Supply Code contained string of provisions relating to collection of electricity charges, disconnection of supply, restoration of supply and recovery of consumption charges. Regulation 22(4) of the Supply Code, as it stood originally permitted the consumer to pay the arrears of consumption charges in installments. As per the said provision, the Licensee shall have the power to allow installment payments of all arrears in deserving cases.
Regulation 22(4) of the Supply Code, as it stood originally permitted the consumer to pay the arrears of consumption charges in installments. As per the said provision, the Licensee shall have the power to allow installment payments of all arrears in deserving cases. The said provision was in the statute book till it was amended by notification dated 3 June, 2014. The Tamil Nadu Electricity Regulatory Commission deleted the said provision permitting payment of consumption charges in installments. 6. There was another provision viz., Regulation 22 (6)(ii) of the Supply Code, which permits the Authorised Officer of the Licensee to permit the consumer to pay the outstanding in installments and to avail reconnection on payment of 40% of the total arrears outstanding in accordance with sub-regulation (4) of Regulation 22 of the Supply Code. 7. The Tamil Nadu Electricity Regulatory Commission by notification dated 3 June 2014 amended sub-regulation 6(ii) of Regulation 22 of the Supply Code by deleting the word "in accordance with sub-regulation (4). The amended provision reads thus: "(ii) The authorized officer of the Licensee may permit such consumer to pay the outstanding in installments and to avail reconnection on receipt of 40% of the total arrears outstanding after closing of account due to the licensee, which include-" 8. Sub-Regulation (6) (ii) of Regulation 22 of the Supply Code now permits the Authorized officer to permit the consumer to pay the outstanding in installments and to avail reconnection on payment of 40% of the total arrears. 9. The amended provision has nothing to do with sub-regulation (4) of Regulation 22 of the Supply Code, which was deleted by notification dated 3 June, 2014. It is now an independent provision permitting the authorized officer of the Licensee to collect the arrears of consumption charges from the consumer in installments and give reconnection immediately on receipt of 40% of the total arrears. 10. The learned single Judge notwithstanding the amendment made to the Supply Code permitted the respondents to pay the arrears in 10 installments after making initial payment, which would not meet the statutory requirement of 40%. The direction was not in accordance with sub-regulation (6) (ii) of Regulation 22 of the Supply Code. We are therefore of the view that the impugned order passed by the learned single Judge in the respective writ petitions deserves to be modified. 11.
The direction was not in accordance with sub-regulation (6) (ii) of Regulation 22 of the Supply Code. We are therefore of the view that the impugned order passed by the learned single Judge in the respective writ petitions deserves to be modified. 11. We direct the respondent in the respective appeals to pay 40% of the total arrears per connection within a period of eight weeks and pay the balance amount in 10 equal monthly installments. The respondent shall also pay the current consumption charges. The appellants are directed to give re-connection forthwith on payment of 40% of the total arrears. 12. The intra court appeals are allowed to the extent indicated above. No costs. Consequently, connected miscellaneous petitions are closed.